IMF Warns of Economic Contraction Amidst Lebanon's Crisis

Lebanon's GDP is projected to contract by 2026 due to ongoing economic, social, and humanitarian challenges from war. The IMF is collaborating with Lebanese authorities on crisis management and reforms to alleviate the impact. No specific details were disclosed about the measures or comprehensive reforms.

The International Monetary Fund (IMF) has projected a contraction of Lebanon's gross domestic product by 2026, attributing this outcome to the country's complex economic, social, and humanitarian dilemmas arising from renewed conflict.

During a routine briefing on Thursday, IMF spokeswoman Julie Kozack emphasized the global lender's commitment to collaborating with Lebanon's authorities to devise strategies for managing the economic crisis. However, she refrained from providing specific insights into these measures.

Beyond crisis management, the IMF is working alongside Lebanese authorities to formulate more thorough reform plans, which could eventually be sustained by an IMF program, according to Kozack.